Companies have established operations abroad for decades in order to reduce costs and increase revenue through various outsourcing processes.
China and India continues their efforts to become a global economic power. But instead of American companies move operations to India and China in order to save money, Chinese companies are now looking to America as the country of opportunities.
In Africa and Southeast Asia, there are plenty of Chinese companies established. But now Chinese companies review the opportunities in the United States. American workers cost more, but the infrastructure is of higher quality and taxes are the same, or sometimes, in some states, more advantageous than in China.
It is not only Chinese manufacturing companies that are looking to establish operation in the U.S., Indian IT companies as well. The U.S. hopes that Indian IT companies will establish on the market, in order to better compete with companies such as IBM and Accenture. Furthermore, this would increase the job opportunities in the country.
The expansion of Chinese and Indian companies in the U.S. is yet another aspect of the globalized economy. As these firms become larger, they need to start thinking about a future global positioning, and more and more people see the U.S. as the next market.
Although China is successful with an enormous internal market, Chinese companies realize that they must establish operation abroad in order to continue to grow and take advantage of the global market.
Cecilia Helland